Solar bids expected to drop to record low

A solar power project is likely to register a price below 2 cents per kilowatt-hour at some stage during 2017, according to analysis firm GTM Research. As part of its 2017 market forecast, the company suggested that an impending tender round in Saudi Arabia was the most likely contender following an offer of 2.3 cents per kWh for a similar project in nearby Abu Dhabi. The lead author of GTM’s analysis said the conditions that brought the record low bids in Abu Dhabi – long project timeline, near-zero land costs and most significantly, highly-attractive financing – will create “a perfect storm for another record-setting bid” that could dip below 2 cents. Saudi Arabia has set a target of installing 9.5GW of renewable power capacity by 2023. GTM also said many of the same conditions, though not to the same degree, are also present in the United Arab Emirates, Mexico and potentially in Qatar in a year or two.